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| 1 | |
One advantage of the free-market system is that consumers can choose the values they want in the products they buy. |
| | A) | True |
| | B) | False |
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| 2 | |
One of the more common short-term criticisms of advertising is that it is frequently deceptive. |
| | A) | True |
| | B) | False |
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| 3 | |
As our culture has matured, we, as consumers, are not likely to view ads as offensive. |
| | A) | True |
| | B) | False |
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| 4 | |
The largest of the federal government's business-monitoring organizations is the Better Business Bureau. |
| | A) | True |
| | B) | False |
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| 5 | |
The _____ states that in an economy that produces more goods and services than can be consumed, advertising keeps consumers informed of their alternatives and allows companies to compete more effectively for consumer dollars. |
| | A) | advertising paradigm |
| | B) | iceberg principle |
| | C) | abundance principle |
| | D) | principle of consumer domain |
| | E) | accelerator principle |
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| 6 | |
The concept of speech versus commercial speech is of greatest significance when determining the legitimacy of advertising for: |
| | A) | tobacco. |
| | B) | new car models. |
| | C) | specialty magazines. |
| | D) | consumer packaged goods. |
| | E) | raw material such as coal, iron ore, and unrefined oil. |
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| 7 | |
The FTC alleged that NordicTrack, Inc. had made unsubstantiated weight loss claims in its "Change Your Life with NordicTrack" print ads. The Commission challenged a number of claims that the company made about the percentage of purchasers of its cross-country ski exerciser who lost weight, the amount of weight they lost, how long they maintained their weight loss, and how much exercise was needed to achieve an average weight loss of 18 pounds in 12 weeks. The "18 pounds in 12 weeks" weight-loss claim was based on the amount of weight loss reported only by persons who completed a rigorous 12-week exercise program that nearly half the participants failed to complete. Also, the studies failed to take into account changes in purchasers' dietary habits and may have been subject to bias by relying on self-reported body weight. In other words, Nordic Track was guilty of _____ advertising. |
| | A) | deceptive |
| | B) | corrective |
| | C) | unethical |
| | D) | nonproduct |
| | E) | comparative |
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| 8 | |
Commercials for reducing or eliminating a condition called restless leg syndrome (RLS) started to appear on television in 2006. A medication was found to be an effective cure for the problem. It was not a new medication, but one that had been around for quite a while as a treatment for Parkinson's disease. What agency was responsible for ensuring that this drug could also safely be prescribed for RLS? |
| | A) | The Library of Congress |
| | B) | The Patent and Trademark Office |
| | C) | The Food and Drug Administration |
| | D) | The Federal Trade Commission |
| | E) | The Federal Communications Commission |
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| 9 | |
The major federal regulator of advertising for products sold in interstate commerce is the: |
| | A) | Federal Communications Commission. |
| | B) | Patent and Trademark Office. |
| | C) | Food and Drug Administration. |
| | D) | Better Business Bureau. |
| | E) | Federal Trade Commission. |
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| 10 | |
Funded by dues from more than 100,000 member companies, this agency operates primarily at the local level to protect consumers against fraudulent and deceptive advertising and sales practices. |
| | A) | The U.S. Patent and Trademark Office |
| | B) | The Federal Communications Commission |
| | C) | The Association of National Advertisers |
| | D) | The Federal Trade Commission |
| | E) | The Better Business Bureau |
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| 11 | |
The _____ monitors advertising practices and reviews complaints about advertising from consumers and consumer groups, brand competitors, local Better Business Bureaus, trade associations, and others. |
| | A) | National Advertising Division |
| | B) | Federal Communications Commission |
| | C) | The National Advertising Review Board |
| | D) | Federal Trade Commission |
| | E) | U.S. Patent and Trademark Office |
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